Innovation and Organizational Boundaries †Assignment Sample

Question: Discuss about the Innovation and Organizational Boundaries. Answer: Introduction: As opined by Lavrence and Lozanski (2014), in order to attain success in short period and systematic manner, every organisation requires an appropriate strategy. Every offered products of lululemon are produced to provide the customers a healthy lifestyle and fun. Lululemon follows the present trend in the sports apparel industry and produce their own products accordingly. The main strategy of lululemon is to offer sports apparel in a fashionable manner and not only for exercising purpose (Mattioli 2012). Lululemon athletic scans its existing external environment in constant manner in order to understand the present trends and condition in the sports apparel industry. After identifying the effective key issues, lululemon athletics offer the manufactured products with proper following of the contemporary trends in the sports industry. Before entering into the new markets, the business experts of this company develop the existing products in order to attract the new customers. Even the process of scanning helps lululemon to identify its potential competitors in the market. According to Ganin (2014), business strategy helps an organisation to know in detailed manner about the external and internal environment. The major trend, which lululemon follows is to offer creative and innovative products for targeting the new customers in the international market for business expansion. Lululemon always offer the important and necessary products to the consumers. The condition of lululemon changes with the constant transformation in the market trends and the criteria of the consumers. Lululemon also introduce products for children, which is named iviva brand and develop the present products (Larcker et al. 2014). The major strategies of lululemon have been completed by the business experts of its company by visiting the outlets and understand about the customer behaviour regarding their offered products. Another important trend of lululemon is to support supply chain manage ment and to create a scarcity of the offered product with a very limited stock. Both of these trends and condition have positive outcomes in the international market of sports apparel (Ferrell and Fraedrich 2015). After analysing the major risks of lululemon, the business experts can change its strategic direction, which can be traced from its competitor companies in the international market. There is a high-level competition in the industry of yoga apparel; therefore, all the business strategies of lululemon should be effective enough to be successful in this competitive market. The major competitors of lululemon in the international market are Adidas and Nike. Monczka et al. (2015) have mentioned that an organisation should follow contemporary trends of the market in order to retain its holding position in the market share. Similarly, lululemon has opted for e-commerce option in order to give a tough fight to its competitor companies. All of the strategic direction should be made in order to fulfil the mission and vision of lululemon with a proper maintenance of the reputation and the brand value of the company. lululemon may change its strategic direction with a perfect adjustment of the tr ansforming requirements and the preferences of the consumers. Even the management may employ new business experts in order to create new and effective strategic direction for the future success of the company. What are the recommendations to reduce the potential risks? According to Dulek and Campbell (2015), potential risks include constantly growing concern in todays competitive business world for an organisation. Although lululemon enjoys a strong position in the sports apparel industry, still it faces some serious issues during its business expansion in the international market. The following recommendations are effective enough for lululemon to reduce the potential risks in the international market. The business experts of lululemon should review the current systems of every internal control. Lululemon should minimise the basic operational costs in order to reduce the potential risks. The marketers and the business experts should develop a proper management and marketing plan of risk reducing. The higher authority of lululemon should provide a friendly environment for the associated employees of the company in order to offer a perfect svope of discussion and suggestion of relevant strategies. The marketers should make a thorough and in depth market analysis in ode to get a clear, detailed and transparent view about the business operation of the competitor companies. Lululemon should improve its official website and incorporate more information than the previous one in order to attract the new generation consumers. All these above-mentioned recommendations will be appropriate if the management of lululemon incorporates completely new policies, procedures, rules and regulations for further success of the organisation in the international market. Chircu et al. (2015) have suggested that the business experts usually make an effective marketing plan in order to follow the effective strategies. Lululemon very carefully designs its entire business practices in order to mitigate the potential risks within the industry of international market. As opined by Lakhani et al. (2012), the professional and the product liability procedures and policies initially offers the ultimate coverage of the business, which are clearly exposed in front of potential risks. However, lululemon have adopted potential strategies in order to give suitable protections to the potential risks. The marketers should perform a perfect risk analysis with proper evaluation and monitoring process as it helps to determine the basic cons equences of the activities of potential risks. Distelhorst et al. (2014) have stated that there are very low benefits and consequences after avoiding and mitigating the risks in the market. The business experts of lululemon reduces financial and operational risks in the international market with an excellent finance source and loans as it primarily controls and handles the constant growth of the organisation. According to Trenberth and Hassan (2012), implementation of reporting system also provides some major information regarding the performance of an organisation. The business experts should control these reporting systems after the comparisons of the fundamental performance and practice to the reported information and control process and procedures. Brown (2012) has mentioned that if an organisation fails to pay the loans within adequate time, then it can be replaced with fixed rated loans and credit of short-term. Lululemon solely concentrates on its sales and marketing strategy during its business expansion in the international market. References Brown, J., 2012.Systems thinking strategy: The new way to understand your business and drive performance. iUniverse. Chircu, A.M., Resnick, M. and Saraswat, S.P., 2015. Online Intermediaries and Supply Chains.The International Encyclopedia of Digital Communication and Society. Distelhorst, G., Hainmueller, J. and Locke, R.M., 2014. Does lean improve labor standards? Capability building and social performance in the Nike supply chain.Watson Institute for International Studies Research Paper, (2013-09). Dulek, R.E. and Campbell, K.S., 2015. On the dark side of strategic communication.International Journal of Business Communication,52(1), pp.122-142. Ferrell, O.C. and Fraedrich, J., 2015.Business ethics: Ethical decision making cases. Nelson Education. Ganin, C., 2014. American Apparel, Crumbs Cupcakes, and Lululemon, Oh My-Examples of Why Increased Shareholder Invovlement Will Not Fix Corporate America. Ariz. L. Rev., 56, p.937. Lakhani, K., Lifshitz-Assaf, H. and Tushman, M., 2012. Open innovation and organizational boundaries: the impact of task decomposition and knowledge distribution on the locus of innovation.Harvard Business School Technology Operations Mgt. Unit Working Paper, (12-57), pp.12-057. Larcker, D.F., Larcker, S.M. and Tayan, B., 2014. Lululemon: A Sheer Debacle in Risk Management.Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance and Leadership No. CGRP-41, pp.14-21. Lavrence, C. and Lozanski, K., 2014. This Is Not Your Practice Life: lululemon and the Neoliberal Governance of Self.Canadian Review of Sociology/Revue canadienne de sociologie,51(1), pp.76-94. Mattioli, D., 2012. Lululemons Secret Sauce.Wall Street Journal. Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015.Purchasing and supply chain management. Cengage Learning. Trenberth, L. and Hassan, D., 2012. Managing sport business.An introduction.